THE WALMART CONUNDRUM

I attended a
very informative presentation recently by a senior regional Walmart
representative seeking the endorsement of the Central City Association of Los
Angeles, a citywide business advocacy group. Walmart has been rolling out their small-format Neighborhood Market concept (+/-35,000 s.f.) and their recently announced plan to put one in on the fringes of Chinatown in downtown Los Angeles was met with howls of protest. The representative put up a PowerPoint presentation chock full of dazzling statistics about Walmart’s incredibly diverse employee population, their better-than-average pay scale, and the
fantastic value they bring to their customers. The presentation felt like a defensive move in the face of “NIMBY” resistance they seem to get from so many cities. They are eager to prove they are a responsible, good neighbor dedicated to serving the needs and desires of the shopping population.

The presentation left me with the distinct impression that the world’s largest retailer sees the entire population of the world as either as employees, customers, or suppliers. The conundrum
is that while they pursue their noble goal of bringing their customers good products at the lowest prices, there are many ordinary people in these communities who chose to be business owners instead. And they just can’t survive when Walmart comes to town.

I am sure this grocery-deficient neighborhood will gobble up what Walmart has to offer. And a few family-owned shops and markets will close.